SOCIAL EXCHANGE THEORY

A psychological theory that attempts to explain the social

factors that influence how individuals interact within a

reciprocal relationship.

SOCIAL EXCHANGE THEORY

The Basic formula for predicting behavior

Behavior(profit) = reward of interaction – cost of interaction

The Main Idea

Social exchange theorist explain that although individuals are constrained by role

expectation. They act within each role to maximize the benefits they will receive and

to minimize the cost to themselves.

THE MAJOR PROPONENTS

BLAUHOMANTHIBAUT KELLER EMERSON

George C. Homans Born in Boston, Massachusetts

August 11, 1910 Homans entered Harvard College in 1928

with an area of concentration in English and American literature.

In the 1930s he attended a faculty-student seminar at Harvard with Pareto.

In 1939 he became a Harvard faculty member, a lifelong affiliation in which he taught both sociology and medieval history.

In 1964 Homans was elected President of the American Sociological Association.

Homans continued…

Homans’s work is divided into two phases The first phase is considered inductive and the second

phase is considered deductive. Credited as the founder of behavioral sociology

and the social exchange theory. Other social exchange theorists: John Thibaut,

Harold Kelley, Peter Blau. Died in Cambridge, Massachusetts May 29,

1989.

Link to Behavioral Psychology

Sources: http://www.reference.com/search?q=operant%20conditioning

Operant conditioning: the use of consequences to modify the occurrence and form of behavior.

- Skinner and the pigeon experiment

“This kind of psychologist is not interested in how the behavior was learned: ‘learning theory’ is a poor name for his [Skinner’s] field. Instead, he is interested in what determines the rate of emissionof learned behavior, whether pecks at a target or something

else.”-Homans

Satiation: the rate of behavior falls off if the behavior is often reinforced. When the pigeon is given much more corn each time it pecks,

the less hungry it will become and the less it pecks. Extinction: the rate of emission of behavior

stops when it is not reinforced. If the pecking is not reinforced with corn, eventually the pigeon

will stop pecking. Cost: aversive stimulation, results in a decrease

in the emission of behavior. Fatigue is an example of a “cost.” Other examples: A Clockwork Orange, treatment for alcoholism

Operant Conditioning

An Exchange Paradigm Homans notes that Skinner’s pigeon experiment cannot

really be an exchange since the behavior of the pigeon hardly determines the behavior the psychologist.

In the case of two men, however, where exchange is real and determination is equal, “each is emitting behavior reinforced to some degree by the behavior of the other.” Smiling, nodding, furrowing of the brow, etc. Talk show hosts

NOTE: The concern is not how each learned in the past the behavior he emits or the behavior he finds reinforcing.

Values: reinforcers; that which strengthens a response. “As he emits behavior, each man may incur costs, and

each man has more than one course of behavior open to him.”

An Exchange Paradigm

“The problem is not, as it is often stated, merely,

what a man’s values are, what he has

learned in the past to find reinforcing, but

how much of any one value his behavior is getting him now.”

- Homans

Peter Michael BlauSon of a secular jewHitler marched into vienna in

1938. Peter’s family was elected to stay.

Escaped from anschluss, miraculuos chance to go to college,

A succesfull career and mobility in USA

His family had been killed in Auschwtiz in 1942.

1918 Vienna – Austria 2002

Exchange and Power in Social Life Homan was an important influence on Blau’s work Blau was interested in examining the processes

that guide face to face interaction Blau argued that such interaction is shaped by a

reciprocal exchange of rewards both tangible and intangible.

Blau maintaines Simmel’s assertation that every interaction can be understood as a form of exchange in which the participant gives the other “ more than he had himself possessed.”

He is interested in building a theoretical bridge that would link sociological studies of everyday interactions between individual and that examined the collective or structural dimension of society.

“To speak of social life is to speak of the association between people- their associating in work and in play, in love and in war, to trade or to worship, to help or to hinder. It is in the social relations men establish that their interests find expression and desire become raelized.”

Peter M. Blau Exchange and Power in Social life, 1964

JOHN THIBAUT AND HAROLD KELLY John Thibaut was a social psychologist, one of the last

graduate students of Kurt Lewin. He spent a number of years as a professor at the University of North Carolina at Chapel Hill, and was the first editor of the Journal of Experimental Social Psychology.

The research group which he headed at UNC was regularly attended by Harry Upshaw, Jack Brehm, Kurt Back, and Edward E. Jones. He is best known for "A Social Psychology of Groups", co-authored by his long-time collaborator Harold Kelley.

The examination of social exchange led John Thibaut and Harold Kelley to develop social exchange theory, a process which was facilitated by Thibaut spending a year at the Center for Advanced Study in the Behavioral Sciences where he had significant interaction with Kenneth Arrow.

JOHN THIBAUT AND HAROLD KELLY Harold Kelley (February 16, 1921 – January 29,

2003) was an American social psychologist and professor of psychology at the University of California, Los Angeles. His major contributions have been the development of interdependence theory (with John Thibaut),the early work of attribution theory,and a lifelong interest in understanding close relationships processes.

JOHN THIBAUT AND HAROLD KELLY In 1959 they

Developed from earlier work by the likes of Kelley and   George Homans, this is based on the  concept that  people try to maximise the rewards from a  relationship - eg: attention, affection -  while  minimising the costs - eg: time and effort, dealing  with the other person's emotional  problems.

Rewards received should at least equal rewards given.

The concept tends to assume that people are  constantly calculating costs and benefits in their  relationships.

RICHARD EMERSON Emerson (1972a) adopted the language and principles of

behavioral psychology to form a theory of social relations. However, he quickly moved beyond behavioral principles to the formation of more complex propositions regarding the emergence of various kinds of social structures. Here the theory picks up the Simmelian focus of Blau’s work as well as the concern with emergent properties and complex social structures. Emerson (1972b), like Blau (1964, 1986), viewed the major task of exchange theory as the creation of a framework in which the primary dependent variable is social structure and structural change. The major task was eminently sociological, not psychological, even though all three theorists explicitly encorporated into their thinking notions about the psychology of actors. Emerson and Cook’s subsequent work (e.g., Cook and Emerson 1978) adopted a more cognitive perspective on the actors involved in social exchange. Molm’s (1981, 1987) earlier work extended the original behavioral underpinnings of the theory.

RICHARD EMERSON A key concept in Emerson’s exchange theory of

power is the idea that exchange relations can be balanced or imbalanced. A power inequality results from an imbalance in power relations between two or more actors. An exchange relation is balanced if both parties are equally dependent on each other for exchange (or resources of value). If they are equally dependent, they have equal power. The central idea that power is based on dependence allows for the specification of ways in which dependencies are altered so that they affect the balance of power in the exchange relation and in networks of exchange relations.

Social Exchange Theory in relation to family Social exchange theory can be used to explain

why couples marry and divorce, have children, make major purchase decisions (houseand vehicles), or relocate the family to a new city. According to exchange theory, we as individuals are motivated out of self-interest and that we make decisions based on maximizing our rewards or profits and minimizing our costs. This is the main premise of social exchange theory.

Social Exchange Theory key assumptions1. Humans are rational beings.

Nye (1982) states that “within the limitations of the information that they [humans] possess and their ability to predict the future, they make the choices that will bring the most profit” (p.23). In other words, humans make rational/sensible decisions based on the amount of information available to them at that moment in time and that these decisions are made in order to receive the greatest rewards with the least amount of costs.

A single mother may be presented with the opportunity for a promotion at work. She must make a rational decision, using the

information available to her at that time, of whether or not to accept the new position. She will take into consideration the rewards

(increased salary, new title, prestige) and the costs (additional child care costs, more time away from her children, increased work load and responsibilities) when making her decision. If she accepts the new position, she’s anticipating that the rewards will outweigh the

costs.

Social Exchange Theory key assumptions2. Individuals must experience costs in order to

obtain future rewards. Nye (1979) explains this assumption as “all

behavior is costly in that it requires expenditure of energy and preempts time that might otherwise produce other rewards”

a student decides to begin studies towards a Masters degree. student will experience numerous costs during their studies such as: time and

energy studying and attending class, additional expenses, and/or more time away from their family. However, in the long run, the

ultimate reward of obtaining their Masters Degree will outweigh all of the costs. The student chooses to adapt to and cope with all of the costs associated with obtaining the advanced degree in order to

achieve it.

Social Exchange Theory key assumptions3. “the standards that humans use to evaluate

rewards and costs differ from person to person and can vary over the course of time”

Nye (1982) holds a similar assumption that“individuals vary in the value they place on the specific objects, experiences, relationships, andpositions” (p. 23). This contrast in the evaluation of rewards and costs may be attributed tocultural, religious, or economic differences between individuals.The rewards associated withobtaining a family pet may be perceived

differently by different family members. One membermay view having a family dog as a reward for home security reasons while

other members of thefamily may receive the reward of companionship from the pet

Social Exchange Theory key assumptions4. Social exchanges are regulated by the norm of

reciprocity Bagarozzi (1993) indicates that this assumption,

“in the form of behavioral reciprocity, was adopted by behaviorists who hypothesized that satisfying marriages were those where high rates of positive reinforces and low rates of punishments were reciprocally exchanged between spouses” (p. 412). The above stated example is a very good description of the norm of reciprocity. The more an individual receives/experiences rewards the more they will reciprocate similar rewarding actions or rewards that are meaningful to the other person

Social Exchange Theory key assumptions5. individuals are motivated by self-interest

Klein and White (1996) indicate that “individuals are unilaterally motivated by self interest-individuals seek things and relationships they regard as beneficial for themselves” (p. 63).

Schaffer and Lia-Hoagberg (1994) note that “humans avoid relationships, interactions, and feeling states that are dissatisfying or costly and seek out situations and experiences that are gratifying, pleasurable, or rewarding” (p. 153).

pregnant women will make choices whether or not to obtain prenatal care based on their perceptions of the

rewards and costs they and their family will receive from the care.

Social Exchange Theory key concepts1. Rewards and Costs

Kleinand White (1996) define rewards and costs as: a reward is anything that is perceived as beneficial to an actor’s interests…although costs may be negative rewards-things perceived as not beneficial to an actor’s self-interest-we should be careful to also include as implicit costs cases in which rewards are missed or forgone. (p. 65)

Nye (1982) adds to the descriptions of these two concepts and states that “in general, we can learnwhat is rewarding to people in society both by observing their behavior and by asking them whatthey like or do not like” (p. 14). We are also able to determine what is costly to an individual byfollowing the same process of observing behaviors and questioning the individual about their likesand dislikes.

Social Exchange Theory key concepts2. Profit or Maximizing utility

Profit, as described by Nye (1982), “can be determined in terms of rewards and punishments involved in a contemplated sequence of actions” (p. 15). Klein and White (1996) define profit in terms of a ratio of rewards to costs and that “actors rationally calculate this ratio for all possible choices in a situation and then choose the action they calculate will bring the greatest rewards or the least costs” (p. 66). Individuals will make decisions for themselves or their families based on the predicted amount of profit they will receive from the choice.

Social Exchange Theory key concepts3. Comparison Level (CL) and Comparison

Level forAlternatives (CL+). These concepts were developed by Thibaut and Kelley.

Thibaut and Kelley (1959) defined Comparison Level as “a standard by which the person evaluates the rewards and costs of a given relationship in terms of what he feels he deserves” (p. 21). Klein and White(1996) further explain this concept as “the comparison (CL) of what others in your position have and how well you are doing relative to them” (p. 66). For example, a wife may compare the benefits of her marriage to other women who live in a similar marital environments. The concept of Comparison Level is slightly different from the concept of Comparison Level for Alternatives.

Social Exchange Theory key concepts3. Comparison Level (CL) and Comparison

Level for Alternatives (CL+). Comparison Level for Alternatives is explained by Klein

and White (1996) as “how well you are doing relative to others outside of your position but in positions that supply an alternative choice” (p. 66). The wife may not only compare her benefits relative to women in other marriages, but she may also make an alternative comparison of the rewards of her current marriage to the possible rewards of being divorced or remarrying. The Comparison Level of Alternatives is very subjective. If the wife perceives that she will receive more benefits or rewards if she divorces her husband she is more likely to leave her current marriage.

Social Exchange Theory application in the familySocial exchange theory has numerous applications to

working with families. It was noted during a brief literature review that social exchange theory has been

applied to the distribution of housework and child caring responsibilities, divorce, family violence,

relationship satisfaction, decisions regarding prenatal care, and planning for marriage.